Power Finance Corporation (PFC) has successfully raised $1.265 billion through a foreign currency term loan. Multiple banks including SBI, IDBI, Axis bank, MUFG, Deutsche, and SMBC took part in the deal. SBI was the largest lender in this deal. The bank also acted as the facility agent for the deal.
The money received from this loan will be utilised to finance energy projects other than thermal power generation. PFC will also use these funds to expand their business, strengthen the market standing, diversify funding sources, and maintain a competitive advantage.
The loan has an average floating interest rate of 4.21 per cent per annum and a five-year term. The loan was raised through different currencies including USD, EUR, and JPY. Furthermore, the loan is linked to external benchmark rates such as the secured overnight financing rate for USD, the Euro interbank offered rate for EUR, and the Tokyo overnight average rate for JPY.
In September 2024, PFC, through its subsidiary PFC Consulting, floated a tender for selection of a transmission service provider to establish an inter-state transmission system. The service provider will evacuate 3 GW of renewable energy from Raghanesda, Gujarat under Phase I.
